According to reports, BAMA TEA (06980), a renowned Chinese tea supplier, has completed its subscription period from October 20 to October 23, 2025. As of noon on October 23, the company has secured margin loans of at least HK$85.3 billion from brokers. With a public offering target of HK$45 million, the shares were oversubscribed by 1,896 times. BAMA TEA plans to issue 9 million shares, with 10% designated for the public offering, at a subscription price between HK$45 and HK$50 per share, aiming to raise a maximum of HK$450 million, with a minimum lot size of 100 shares and an entry cost of HK$5,050.4. The company expects to list on October 28, with Huatai International, Agricultural Bank of China International, and Tianfeng International serving as joint sponsors.
The prospectus reveals that BAMA TEA is a leading tea supplier in China, offering a comprehensive range of products including six major tea varieties, as well as tea utensils and snacks. According to sales revenue from high-end teas in 2024, BAMA TEA ranks first nationally. Additionally, in terms of the number of tea specialty stores as of December 31, 2024, the company also holds the top position among tea suppliers in China. BAMA TEA leads the market in the Oolong and black tea sectors according to 2024 sales data.
The company has maintained the top sales revenue for Tieguanyin tea in the country for over a decade and has held the leading revenue spot for Wuyi Rock tea for five consecutive years, as well as for black tea for four consecutive years. The high-end tea market in China is rapidly developing, with the market size growing from approximately RMB 89 billion in 2020 to about RMB 103.1 billion in 2024, reflecting a compound annual growth rate (CAGR) of about 3.7%. It is expected to reach approximately RMB 135.3 billion by 2029, with a CAGR of around 5.6% from 2024 to 2029.
Leveraging its strengths in brand value, tea-making skills, product development, operational scale, channel management, regional expansion, supply chain management, digital sales platforms, and talent, BAMA TEA has secured its market position as the leading seller of high-end Chinese tea. As a comprehensive tea supplier with a multi-channel sales network and cross-regional operations, BAMA TEA is committed to its mission and values, focusing on producing quality tea and establishing quality shops. The company aims to promote technological innovation and digital empowerment, expand its store coverage into more cities and regions, and enhance the comprehensive brand value of its brand and sub-brands, steadily progressing towards its vision of becoming a leading global tea enterprise.
According to the prospectus, approximately 35.0% of the funds raised from the global offering are expected to be used for expanding existing production facilities and constructing new ones; around 20.0% is intended to enhance the brand value and expand the product portfolio; approximately 15.0% will be allocated to fund the expansion of the company's direct offline store network, focusing on opening more stores to increase brand value, including flagship stores; roughly 10.0% is aimed at enhancing the digitalization of operational processes; around 10.0% might be used for acquisitions or investments in participants within the Chinese tea industry; and the remaining 10.0% is intended for working capital and general corporate purposes.